Lactalis, the world’s largest dairy company, based southwest of Paris is making a buyout offer for the shares that it does not already own in Parmalat, with the aim of delisting the Italian company from the Milan Stock Exchange, according to a report from Reuters.
Speculation
The company has always denied speculation up until now that it planned to delist Parmalat the Italian international dairy giant that went into bankruptcy in 2003 and was relaunched in 2005. Parmalat was founded in 1961 but went into liquidation after a major scandal when a €14 billion hole appeared in its accounts.
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Lactalis took a controlling stake in Parmalat, the largest food company in Italy in 2011, when these fears were even stronger but a rival bid failed to emerge, the takeover remains a sore point with investors and the Italian government.
Foreign investment
Lactalis timing may not be perfect as there are concerns in Italy about companies falling into foreign hands just as another French company Vivendi is making a takeover bid for Berlusconi’s broadcaster Mediaset.
Sofil, the investment company of the Besnier family that own Lactalis said in a statement “that it would continue to support Parmalat’s growth,” adding that it would be easier to achieve with a smaller shareholder base.
After the announcement shares in Parmalat moved up by 10% to their highest level in more than nine years.
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Lactalis, the world’s largest dairy company, based southwest of Paris is making a buyout offer for the shares that it does not already own in Parmalat, with the aim of delisting the Italian company from the Milan Stock Exchange, according to a report from Reuters.
Speculation
The company has always denied speculation up until now that it planned to delist Parmalat the Italian international dairy giant that went into bankruptcy in 2003 and was relaunched in 2005. Parmalat was founded in 1961 but went into liquidation after a major scandal when a €14 billion hole appeared in its accounts.
Lactalis took a controlling stake in Parmalat, the largest food company in Italy in 2011, when these fears were even stronger but a rival bid failed to emerge, the takeover remains a sore point with investors and the Italian government.
Foreign investment
Lactalis timing may not be perfect as there are concerns in Italy about companies falling into foreign hands just as another French company Vivendi is making a takeover bid for Berlusconi’s broadcaster Mediaset.
Sofil, the investment company of the Besnier family that own Lactalis said in a statement “that it would continue to support Parmalat’s growth,” adding that it would be easier to achieve with a smaller shareholder base.
After the announcement shares in Parmalat moved up by 10% to their highest level in more than nine years.
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